Crypto Giant Galaxy Digital Moving Operations Off Shore Citing US Regulatory Headache

The recent US regulatory crackdown has recently forced major crypto players to move out of the country and the latest to join is crypto investing giant Galaxy Digital.

On Tuesday, May 9, Galaxy Digital CEO Mike Novogratz announced moving their operations outside the US citing a difficult regulatory environment. The Bitcoin bull and billionaire investors said that following the collapse of the crypto exchange FTX, the US regulators have taken a high-handed approach to regulating the crypto market. In a conference call, after the company’s first-quarter earnings, Novogratz said:

“When I look at the short term, we still have a regulatory headache in the United States. I don’t see that breaking anytime soon. We still have a hangover, as well, from the denting of trust that FTX and other bad actors in the space created”.

He further added that digital assets have entered into a period of “stasis” currently in the US since the regulatory and financial watchdogs will continue to “regulate with lawsuits”.

Crypto Firms Rushing Out of the US

As said, the US regulators have been going heavily after crypto firms post the FTX fallout. It has also been targeting some of the top players like BinanceUS, Coinbase, Kraken, and many others.

Galaxy Digital is now building a team of traders in Hong Kong, where regulators are taking crypto-friendly measures to encourage more firms to set up a base. Of course, Hong Kong recently said that there won’t be any ‘Light Touch’ approach and that crypto firms will have to follow the existing rules. More and more crypto firms are choosing Hong Kong because they are bringing regulatory clarity into place.

Galaxy Digital is not the only crypto giant looking to shift base out of the US. In an interview earlier this week on Monday, May 8, Coinbase CEO Brian Armstrong said that the firm is evaluating UAE as a potential crypto hub.